Concept:
The standard transfer function layout of a first-order system is described as:
\[
G(s) = \frac{1}{1 + \tau s}
\]
where \(\tau\) is the time constant of the system. When a unit step input \(R(s) = \frac{1}{s}\) is applied, the output response in the time domain is given by the expression:
\[
c(t) = 1 - e^{-t/\tau} \quad (\text{for } t \ge 0)
\]
The time constant \(\tau\) determines how rapidly the system reaches its final steady-state value.
Step 1: Evaluate the time response function at exactly \(t = \tau\).
Substitute the time value equal to one time constant, i.e., \(t = \tau\), into the output equation:
\[
c(\tau) = 1 - e^{-\tau/\tau} = 1 - e^{-1}
\]
Step 2: Compute the numerical percentage equivalent.
The standard numerical value of mathematical constant \(e\) is approximately equal to \(2.71828\). Thus:
\[
e^{-1} = \frac{1}{2.71828} \approx 0.3678
\]
Substitute this back into the expression for \(c(\tau)\):
\[
c(\tau) = 1 - 0.3678 = 0.6322
\]
Expressing this fraction as a percentage of the final steady-state value (which is \(1\)):
\[
\text{Percentage} = 0.6322 \times 100% = 63.2%
\]
Thus, the time constant represents the time taken for the transient response to reach \(63.2%\) of its ultimate steady-state target, matching option (A).